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Net income using variable costing

Problem: Last month, PeeWee Company manufactured 20,000 units and sold 18,000 of these units at a price of $8.00 per unit. Manufacturing costs consisted of direct labor, $30,000; direct materials, $32,000; variable manufacturing overhead, $3,600; fixed manufacturing overhead, $21,600. Selling and administrative costs totaled $24,000.

What is PeeWee's net income using variable costing?

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Accounting Basics: Net income using variable costing

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Net income using variable costing

Reference No:- TGS01738007

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Ways of depreciation treat as change in accounting principle

Q : Minimum transfer price acceptable to box division

Q : Product costs for external reporting purposes

Q : Company contribution margin per unit

Q : Net income using variable costing

Q : Company total assets-annual reporting periods

Q : Actual return on plan assets

Q : Estimated amount of cash receipts for may

Q : Determine the impact on profits next year

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Net income using variable costing

Reference No:- TGS01738007

Recent Questions Asked Accounting Basics

Q : Ways of depreciation treat as change in accounting principle

Q : Minimum transfer price acceptable to box division

Q : Product costs for external reporting purposes

Q : Company contribution margin per unit

Q : Net income using variable costing

Q : Company total assets-annual reporting periods

Q : Actual return on plan assets

Q : Estimated amount of cash receipts for may

Q : Determine the impact on profits next year

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